PM Vidyalaxmi Scheme: Who is eligible for an interest waiver on education loans under the PM Vidyalaxmi Scheme?
If a student finds it difficult to arrange funds for higher education fees due to financial constraints, the Pradhan Mantri Vidya Lakshmi Yojana can be of assistance. Under this scheme, eligible students can obtain education loans without the need for a guarantor or collateral. Additionally, interest rate subsidies may be provided based on family income. The entire process—from application to status tracking—can be completed via an online portal.
What is the Pradhan Mantri Vidya Lakshmi Yojana?
The Pradhan Mantri Vidya Lakshmi Yojana is an initiative by the Central Government aimed at providing financial assistance to students who might otherwise be deprived of higher education due to financial reasons. Eligible students who secure admission based on merit at recognized higher education institutions can apply for education loans under this scheme. Aligned with the objectives of NEP 2020, this initiative focuses on expanding access to higher education.
Education loans available without collateral
Under this scheme, eligible students do not require a guarantor or collateral to secure an education loan. The Central Government provides a credit guarantee of up to 75% on loans amounting to ₹7.5 lakh. This facilitates banks in extending unsecured loans to eligible students.
Interest relief based on income
The scheme offers interest relief based on the family's annual income. Eligible students with an annual family income of up to ₹8 lakh can receive a 3% interest subsidy on education loans of up to ₹10 lakh. Meanwhile, eligible students from families with an annual income of up to ₹4.5 lakh may avail the benefit of a full interest subsidy, subject to applicable rules.
Which students are eligible?
Eligible students who secure admission on merit to designated higher education institutions can apply for this facility. These include institutions selected under the NIRF framework, state government institutions ranked between 101 and 200, and central government institutions. While there is no family income limit for obtaining the education loan itself, meeting specific income criteria and other eligibility conditions is mandatory to avail the interest subsidy.
How to Apply Online
To apply under the Pradhan Mantri Vidya Lakshmi Yojana, students must first register on the official portal. Next, they need to fill out the Common Education Loan Application Form. After entering the required information and submitting the necessary documents, students can select a bank of their choice and submit the application. Students can also check the status of their education loan application online through the portal.
Disclaimer: This content has been sourced and edited from Money Control. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
